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Stanley Electric Co
(6923)
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Rating:75Outperform
Price Target:
¥3,925.00
▲(14.33% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by solid financial performance (steady growth and stable profitability, tempered by 2026 margin pressure, higher leverage, and weaker cash conversion). Technicals add support via strong trend strength, though overbought signals raise near-term pullback risk. Valuation is supportive with a modest P/E and a ~3% dividend yield.
Positive Factors
OEM-focused business model
A direct OEM supply model with global production footprints and just-in-time support embeds Stanley into automakers' supply chains, creating durable revenue visibility, high switching costs and recurring content-per-vehicle upside as automakers upgrade to advanced lighting systems.
Negative Factors
Rising leverage
A meaningful increase in debt reduces financial flexibility and raises interest expense risk; higher leverage can constrain strategic optionality (M&A, capex, dividends) and increases vulnerability to demand shocks or weaker cash conversion over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
OEM-focused business model
A direct OEM supply model with global production footprints and just-in-time support embeds Stanley into automakers' supply chains, creating durable revenue visibility, high switching costs and recurring content-per-vehicle upside as automakers upgrade to advanced lighting systems.
Read all positive factors
Stanley Electric Co (6923) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥429.08B
Dividend Yield2.98%
Average Volume (3M)654.85K
Price to Earnings (P/E)14.1
Beta (1Y)0.78
Revenue Growth7.19%
EPS Growth21.95%
CountryJP
Employees18,230
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)247.69
Shares Outstanding126,000,000
10 Day Avg. Volume712,470
30 Day Avg. Volume654,850
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)0.86
Price to Sales (P/S)0.75
P/FCF Ratio16.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,300.00Price Target Upside25.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)300.09
Revenue Forecast (FY)¥625.45B
Stanley Electric Co Business Overview & Revenue Model
Company Description
Stanley Electric Co., Ltd., established in Tokyo, Japan in 1920, is a global leader in the manufacturing, sales, and import/export of a diverse range of lighting solutions, particularly for the automotive sector. The company's operations are struc...
How the Company Makes Money
Stanley Electric primarily makes money by manufacturing and selling components to original equipment manufacturers (OEMs), with revenue largely tied to the supply of lighting and related systems for new vehicles. Key revenue streams include: (1) A...
Stanley Electric Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 518.46B | 509.56B | 472.40B | 439.57B | 382.56B |
| Gross Profit | 107.88B | 99.66B | 77.46B | 77.44B | 65.47B |
| EBITDA | 98.92B | 97.13B | 80.24B | 86.68B | 72.18B |
| Net Income | 32.81B | 32.06B | 26.50B | 26.50B | 21.45B |
Balance Sheet | |||||
| Total Assets | 809.26B | 749.61B | 708.26B | 629.61B | 585.38B |
| Cash, Cash Equivalents and Short-Term Investments | 226.99B | 221.03B | 198.64B | 173.41B | 150.75B |
| Total Debt | 120.91B | 44.58B | 14.28B | 14.17B | 12.58B |
| Total Liabilities | 237.32B | 150.69B | 118.90B | 93.48B | 96.42B |
| Stockholders Equity | 454.53B | 485.89B | 524.80B | 476.64B | 434.94B |
Cash Flow | |||||
| Free Cash Flow | 23.08B | 22.79B | 40.49B | 40.83B | 8.44B |
| Operating Cash Flow | 78.34B | 66.58B | 65.55B | 76.28B | 36.88B |
| Investing Cash Flow | -48.90B | -64.87B | -31.56B | -56.43B | -20.26B |
| Financing Cash Flow | -31.71B | -19.97B | -25.95B | -3.82B | -13.48B |
Stanley Electric Co Technical Analysis
Positive
3433.00
Price Trends
3567.96
Negative
3318.24
Positive
3177.40
Positive
Market Momentum
-14.41
Positive
50.25
Neutral
35.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6923, the sentiment is Positive. The current price of 3433 is below the 20-day moving average (MA) of 3505.90, below the 50-day MA of 3567.96, and above the 200-day MA of 3177.40, indicating a neutral trend. The MACD of -14.41 indicates Positive momentum. The RSI at 50.25 is Neutral, neither overbought nor oversold. The STOCH value of 35.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6923.
Stanley Electric Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥650.92B | 10.26 | 10.96% | 2.75% | 12.73% | 81.53% | |
75 Outperform | ¥429.08B | 14.15 | 7.21% | 3.03% | 7.19% | 21.95% | |
75 Outperform | ¥51.04B | 7.94 | 8.50% | 2.64% | -3.94% | 36.68% | |
71 Outperform | ¥5.42T | 12.26 | 8.64% | 3.26% | 7.51% | 13.94% | |
71 Outperform | ¥760.94B | 33.41 | 2.64% | 2.28% | 6.85% | -54.33% | |
63 Neutral | ¥6.91T | 17.00 | 14.96% | 1.56% | 12.30% | 103.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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Stanley Electric Co Corporate Events
Stanley Electric Posts Higher Q1 FY2027/3 Sales and Profit Despite China Slowdown
Jul 30, 2026
Stanley Electric Co. reported a strong start to FY2027/3, with revenue and profit growth despite persistent headwinds in the Chinese market. The company’s performance was buoyed by robust sales in the Americas and Asia-Pacific motorcycle bus...
Stanley Electric Completes Treasury Stock Disposal for Executive Compensation Trust
Jul 14, 2026
Stanley Electric Co., Ltd., a key player in automotive and optical electronics, has confirmed completion of payment procedures for a previously approved disposal of treasury stock used for stock-based executive compensation. The company, listed on...
Stanley Electric to Dispose of Treasury Stock for New Executive Share Plan
Jun 25, 2026
Stanley Electric has approved the disposal of 200,000 shares of its treasury stock, worth ¥709 million at ¥3,545 per share, to be allotted to The Master Trust Bank of Japan under an Executive Compensation BIP Trust for directors. The com...
Stanley Electric to Grant Restricted Treasury Shares to Executives and Staff
Jun 22, 2026
Stanley Electric will dispose of 35,170 shares of its treasury stock on July 31, 2026, under a restricted stock compensation plan targeting 557 managing executive officers, executive officers, employees, and directors of domestic subsidiaries. Pri...
Stanley Electric Overhauls Executive Pay with New Stock-Based BIP Trust
May 20, 2026
Stanley Electric Co., Ltd. has approved a revision of its executive compensation system, replacing its existing restricted stock program with a new stock-based Executive Compensation BIP Trust for directors residing in Japan. The move is intended ...
Stanley Electric Raises Annual Dividend as Payout Policy Supports Shareholders
May 20, 2026
Stanley Electric’s board has approved a year-end dividend of 55 yen per share for the fiscal year ended March 31, 2026, matching its latest forecast and bringing the total annual dividend to 104 yen when combined with the interim payment of ...
Stanley Electric Lifts Sales and Profit per Share Despite Margin Pressure
May 12, 2026
Stanley Electric reported a modest 1.7% rise in net sales to ¥518.4 billion for the fiscal year ended March 2026, but operating income fell 12.9% as margins narrowed, with the operating margin slipping from 9.6% to 8.2%. Ordinary income decli...
Stanley Electric Lifts Full-Year Dividend Payout for FY2026
May 12, 2026
Stanley Electric has revised its dividend forecast for the fiscal year ended March 2026, aligning with its financial strategy under the 8th Mid-Term Three-Year Management Plan that emphasizes stable dividends and appropriate profit distribution. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.